HÜVITUSFOND

ANNOUNCEMENT



TERMS AND CONDITIONS FOR ISSUE OF XVII-SERIES BONDS



According to the 08.09.2000 and 03.11.2000 resolutions of the 

Supervisory Board of the Hüvitusfond (Compensation Fund), the XVII-

series bonds will be issued on the following terms and conditions:



1. Volume of the issue is EEK 20,000,000.

The Fund will issue 200,000 bonds at face value of EEK 100.



2. The issue is public. The issue will take place from 06.11.00 until 

17.11.00.



3. In the course of the issue the bonds are sold to private and 

corporate investors for Estonian Privatization Vouchers (EVP). 

Offer price per one bond is 141 EVP or EEK 100.



4. The Fund will redeem bonds on 20.11.2002 at nominal value. 



5. Bonds are nominal, issued in dematerialized form.



6. The issue is registered with the Estonian Central Depository for 

Securities. The initial offering of bonds will be intermediated by 

account operators of Estonian Central Depository for Securities - 

Eesti Ühispank, Hansapank, Optiva Pank, Eesti Krediidipank, Preatoni 

Pank.



7. Hüvitusfond will pay fixed interest of 7% of bond's nominal value 

annually. In addition the Fund will also pay additional interest, 

the size of which will be determined by the Fund's Supervisory Board 

twice per year.



8. Value date: 23.11.2000.



9. Interest payments will be made to investors once per year on 

November 20.



10. Interest income from Hüvitusfond bonds is exempt from income tax.



11. Bonds are freely disposable on the secondary market.



12. Bonds are fully backed with privatization revenues and other 

assets of the Fund.



13. Issue prospectus is available at account operator banks during 

the subscription period.



The public issue of Hüvitusfond XVII-series bonds is registered with 

the Securities Inspectorate on 24.10.2000 under registration code 

24.





Jaanus Kosemaa

Public Relations Manager

+372 66 51 800